Coronavirus to prompt RBA ‘to cut rates in March’

The Reserve Bank of Australia will cut rates on Tuesday to stimulate an economy that is struggling with the economic ramifications of the coronavirus according to financial commentator Peter Switzer.

The RBA is due to meet on Tuesday and will decide whether to decrease Australia’s cash rate to a record low of 0.50 per cent.

Stock markets across the world have plummeted as the number of people who contracted the disease exceeded 90,000 worldwide, with 3,000 deaths.

Over 90 per cent of the fatalities have been recorded in China, as the government struggles to contain the virus.

The World Health Organisation said on Sunday that the death rate for coronavirus appears to be between two and five per cent.

Mr Switzer said while China’s economy is slowing, he expects it “to bounce back” once infection rates begins to stablise.